Auto companies likely to offer discounts to back scrappage scheme

Desirazu VenkatThursday 28 April 2016, 14:44 PM

Auto companies are likely to offer major discounts to back the Central Government’s proposed scrappage scheme. Sources suggest that those who opt to scrap their older vehicles could take advantage of a bunch of incentives including tax rebates when buying a new car.

Dubbed the voluntary vehicle modernisation scheme, automakers have now realised that for it to materialise completely, they would have to throw their weight behind it. The introduction of this scheme would have far reaching benefits. Apart from improving emission standards, it would create more jobs both in the auto and recycling industry due to increased demand.

The scheme has been in the works for a while now and when implemented will see older vehicles not complying with modern emission standard being taken off the road in favour of newer cars. Reports suggest that the government is awaiting a final report for the same from the consultancy firm AT Kearney but the process could take another six months at least.